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If You're Going to Protest, Watch This!
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Keeta's success was made possible first because the Hong Kong government Competition Commission was investigating Foodpanda and Deliveroo's contractual terms with restaurants, suggesting their terms may “hinder entry and expansion by new or smaller platforms and soften competition in the market.”
After Keeta entered the city, it launched a price war with a so-called “cash-burning” strategy, which includes offering special deals with chain stores, offering up to HKD 300 (USD 38.22) coupons for newly registered users during its launch, introducing a “punctuality guarantee” system to compensate customers with coupons if the delivery does not arrive within a designated timeframe. Moreover, unlike other platforms which charge non-paid members a delivery fee, Keeta lets all platform users enjoy free delivery services as the restaurants and Keeta cover the cost.
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Firstly, it lowered the pay rate of riders’ long-distance delivery from an average of HKD 60 (USD 7.64) per task to HKD 50 (6.37) and shorter-distance delivery from an average of HKD 50 to HKD 30–40 (USD 3.82–5.10). Secondly, it introduced a “K Go” scheme to force delivery workers to lose 20–30 percent of their pay rate in exchange for a higher priority in receiving service orders. Lastly, it launched a “Grab the task” alert feature that compels delivery workers to constantly check the app to compete for orders.
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